WTI Crude Oil Breakout Sideway – Trump Behind It! - Forex News by FX Leaders

WTI Crude Oil Breakout Sideway – Trump Behind It!

Posted Wednesday, May 9, 2018 by
Arslan Butt • 1 min read

It’s been a volatile session for crude oil as it’s continuously trading bullish, near 3/2-year highs after President Donald Trump pulled the U.S. out of an international nuclear deal with Iran. Thereby, sparking anxieties about a fresh tension in the Middle East and global oil supplies.

By the way, if you are wondering what Iran has to do with crude oil prices, I would like to add, Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the main supplier, particularly to refiners in Asia.

In response, Asia’s petroleum refiners are struggling to locate alternative supplies in order to cope with the renewed U.S. sanctions against Iran. I hope the picture is clear to you now, so let’s speak about the technical drivers.

WTI Crude Oil - 4 Hourly Chart

Crude oil finally has come out of the sideways range ($67 – $69) after bullish fundamentals. The $69.40 level was working as a resistance but since it has already violated now, the same level will be a support. Oil is likely to target $71.75 now. Looking at the RSI, it’s about to cross above 50, which will be another motivation for buyers.

WTI Crude Oil – Trade Idea

It will be nice to stay bullish above $70.55 with a stop below $70 and a take profit at $71.75. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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